Electronic-monetary system

Abstract

An improved monetary system using electronic media to exchange economic value securely and reliably is disclosed. The system provides a complete monetary system having electronic money that is interchangeable with conventional paper money. Also disclosed is a system for open electronic commerce having a customer trusted agent securely communicating with a first money module, and a merchant trusted agent securely communicating with a second money module. Both trusted agents are capable of establishing a first cryptographically secure session, and both money modules are capable of establishing a second cryptographically secure session. The merchant trusted agent transfers electronic merchandise to the customer trusted agent, and the first money module transfers electronic money to the second money module. The money modules inform their trusted agents of the successful completion of payment, and the customer may use the purchased electronic merchandise.

Description

[0001]This patent application is a continuation of U.S. application Ser. No. 09 / 138,459, filed Aug. 21, 1998 now U.S. Pat. No. 7,028,187, which is (1) a divisional of 08 / 895,395, filed Jul. 16, 1997, now U.S. Pat. No. 6,175,921, which is a divisional of application Ser. No. 08 / 730,158, filed Oct. 23, 1996, now U.S. Pat. No. 5,703,949, which is a file wrapper continuation of application Ser. No. 08 / 575,699, filed Dec. 19, 1995, now abandoned, which is a divisional of application Ser. No. 08 / 234,461, filed Apr. 28, 1994, now U.S. Pat. No. 5,557,518; and (2) a continuation-in-part of U.S. application Ser. No. 09 / 039,933, filed Mar. 16, 1998, now U.S. Pat. No. 6,047,887, which is a divisional of application Ser. No. 08 / 371,201, filed Jan. 11, 1995, now U.S. Pat. No. 5,898,154, which is a divisional of application Ser. No. 07 / 794,112, filed Nov. 15, 1991, now U.S. Pat. No. 5,453,601. Each of the above is hereby incorporated by reference in its entirety.FIELD OF THE INVENTION[0002]The pre...

AI Technical Summary

Benefits of technology

Enables secure, real-time, and cost-effective transactions of any size, reducing the need for paper cash and checks, and providing a user-friendly system for transferring economic value without relying on the banking system, while maintaining the integrity and security of transactions.

Problems solved by technology

The extensive use of coin and currency transactions has limited the automation of individual transactions such as purchases, fares, and bank account deposits and withdrawals.

Individual cash transactions are burdened by the need of having the correct amount or providing change therefor.

Furthermore, the handling and managing of paper cash and coins is inconvenient, costly and time consuming for both individuals and financial institutions alike.

Although checks may be written for any specific amount up to the amount available in the account, checks have very limited transferability and must be supplied from a physical inventory.

Paper-based checking systems do not offer sufficient relief from the limitations of cash transactions, sharing many of the inconveniences of handling currency while adding the inherent delays associated with processing checks.

However, the payments made through these types of EFT systems are limited in that they cannot be performed without the banking system.

Moreover, ACH transactions usually cannot be performed during off business hours.

Currently, home banking initiatives have found few customers.

One reason that Home Banking has not been a successful product is because the customer cannot deposit and withdraw money as needed in this type of system.

Current EFT systems, credit cards, or debit cards, which are used with an on-line system to transfer money between accounts, such as between the account of a merchant and that of a customer, cannot satisfy the need for an automated transaction system that provides for the transfer of universally accepted economic value outside of the banking system.

However, these proposed systems suffer from a failure to recognize fully the significance of bank deposits as money, and their necessity to back any form of universally accepted monetary representations that may be issued.

None of the paperless payment systems that have been proposed so far are comprehensive enough so as to implement a multipurpose electronic monetary system that includes not only the automated devices that allow subscribers to transfer electronic funds or money between them without any intermediating system, but that also encompasses and includes an entire banking system for generating the value represented by the electronic money and for clearing and settling the electronic money accounts of the banks and financial institutions involved to maintain a monetary balance within the system.

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